Mirae Asset Global Investments in its acquisition of the landmark Fairmont San Francisco Hotel
2015.11.25.
Yulchon advised Mirae Asset Global Investments and its real estate collective investment fund in the successful acquisition of the landmark Fairmont San Francisco Hotel via a subsidiary of a U.S. REIT. This purchase, worth USD 450 million, was completed through the investment fund"s indirect acquisition of 100% of the shares held by the company which owned the aforesaid property. A separate management company which leased the property would handle the actual operation and maintenance of the property. This transaction necessitated the establishment and participation of a taxable REIT subsidiary in order to accomplish the tax objectives of the U.S. REIT and the larger transaction as a whole.
Yulchon"s comprehensive advisory services throughout this complex transaction (which was unrivalled during this time for size and scope in its sector) included review and input on all related acquisition, financing and hotel management contracts, coordination with local counsel and guidance on formulating the optimal capital investment structure in compliance with applicable Korean and U.S. laws, review of due diligence reports provided by local legal advisors, assistance with the preparation of all required Korean foreign direct investment notifications and on-site transfer of licenses and permits.
Attorneys Tae Jin Cha, David Pyun, Young Hur, Kyo Jun Shim and Young Joon Yoon of Real Estate & Construction group worked together to successfully close the deal.
